- Fourth Quarter Revenue of $19.1 million
- Second Consecutive Quarter of Profitability
BOULDER, Colo., March 8, 2010 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a leading residential solar energy integrator, today announced results for its fourth quarter and year ended December 31, 2009.
Net revenue for the fourth quarter of 2009 increased 41.8% to $19.1 million from $13.5 million recorded in the same period last year. All of the year-over-year revenue growth was organic.
Gross profit increased to $5.4 million, or 28.1% of net revenue, for the fourth quarter of 2009 from $3.2 million, or 23.5% of net revenue, in the comparable period last year. The increase in gross profit percentage primarily reflects improved installation practices as well as declines in module prices over the last year.
Operating expenses as a percent of net revenue decreased to 26.3% for the fourth quarter of 2009 from 42.1% in the comparable period last year. This decrease is partially a reflection of the significant fixed cost component of the business and the available leverage as revenues scale. Additionally, the lower operating expenses have resulted from significant cost savings achieved by transitioning all acquisitions to a single set of systems and a unified brand.
Net income for the fourth quarter of 2009 was $0.2 million, or $0.01 per share, as compared to a net loss of $27.4 million, or $1.53 per share, for the comparable period last year. Excluding the non-cash goodwill impairment charge, net of tax, of $25.9 million, net loss for the fourth quarter of 2008 would have been $1.5 million, or $0.08 per share.
For the year ended December 31, 2009, revenue was $64.3 million, a 64.0% increase from $39.2 million in the comparable period last year, due to acquisitions and organic growth. Net loss totaled $1.6 million, or $0.09 per share, compared to a net loss of $28.0 million, or $1.86 per share, for the year ended December 31, 2008. Excluding the non-cash goodwill impairment charge, net of tax, of $25.9 million, net loss for the year ended December 31, 2008 would have been $2.1 million, or $0.14 per share.
Results for the year ended December 31, 2008 do not include a full year of results for Real Goods Solar's acquisitions of Independent Energy Systems on August 1, 2008 and Regrid Power on October 1, 2008. On a pro forma basis, adding the $15.1 million of revenue from acquisitions not included in the fiscal 2008 reported results, internal revenue growth would have been approximately 18%.
"The fourth quarter saw continued strong demand for residential solar," commented John Schaeffer, President. "Bookings were robust throughout the quarter and we are pleased with the size of our backlog going into the slower winter months. Revenue for the quarter showed significant growth as a result of increasing installation capacity as well as completion of significant low-income housing projects in San Francisco and Richmond. We also reported our second consecutive quarter of profitability combined with over 40% internal revenue growth as we continue to see the benefits of scale, operational efficiencies and strong consumer demand."
"We are pleased with our financial results for the fourth quarter and our ability to maintain profitability," said Erik Zech, Chief Financial Officer. "Our ability to show gross margin expansion and the decline in operating expenses as a percentage of net revenue to 26.3% in the fourth quarter of 2009, as compared to 42.1% in the previous year are both indicative of the progress we have made in optimizing our business. Our balance sheet remained strong at the end of the year with a cash balance of $12.2 million and no debt."
Real Goods Solar will host a conference call tomorrow, March 9, 2010, at 8:30 a.m. PST (11:30 a.m. EST) to review the fourth quarter and fiscal year results.
| Dial-in No.: | 877-941-4774 (domestic) or 480-629-9760 (international) |
| Passcode: | Real Goods |
A replay of the call will begin approximately two hours after the end of the call and will continue until midnight EDT on March 16, 2010.
| Replay number: | 800-406-7325 (domestic) or 303-590-3030 (international) |
| Pin: | 4259909 |
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential solar energy integrator, having installed over 5,000 solar systems. Real Goods Solar offers turnkey solar energy services, and has 32 years of experience in residential solar energy, beginning with the sale in 1978 of the first solar photovoltaic, or PV, panels in the United States. For more information about Real Goods Solar, please visit www.realgoodssolar.com, or call (888) 507-2561.
The Real Goods Solar, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6455
This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as "expect," "intend," "believe," "will," "should" or comparable terminology or by discussions of strategy. While Real Goods Solar believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of new products and services, completion and integration of acquisitions, the possibility of negative economic conditions, and other risks and uncertainties included in Real Goods Solar's filings with the Securities and Exchange Commission. Real Goods Solar assumes no duty to update any forward-looking statements.
| REAL GOODS SOLAR, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (In thousands, except per share data) | ||||
|
Three Months Ended December 31, 2009 |
Three Months Ended December 31, 2008 |
|||
| Net revenue | $ 19,118 | 100.0 % | $ 13,479 | 100.0 % |
| Cost of goods sold | 13,755 | 71.9 % | 10,318 | 76.5 % |
| Gross profit | 5,363 | 28.1 % | 3,161 | 23.5 % |
| Operating expenses | 5,026 | 26.3 % | 5,668 | 42.1 % |
| Impairment loss | — | 0.0 % | 27,192 | 201.7% |
| Income (loss) from operations | 337 | 1.8 % | (29,699) | -220.3 % |
| Interest income (expense) | (3) | 0.0 % | 59 | 0.4 % |
| Income (loss) before income taxes | 334 | 1.8 % | (29,640) | -219.9 % |
| Income tax expense (benefit) | 117 | 0.7 % | (2,244) | -16.6 % |
| Net income (loss) attributable to Real Goods Solar, Inc. | $ 217 | 1.1 % | $ (27,396) | -203.3 % |
| Weighted-average shares outstanding: | ||||
| Basic | 18,286 | 17,889 | ||
| Diluted | 18,364 | 17,889 | ||
|
Net income (loss) per share attributable to Real Goods Solar, Inc. common shareholders: |
||||
| Basic | $ 0.01 | $ (1.53) | ||
| Diluted | $ 0.01 | $ (1.53) | ||
| REAL GOODS SOLAR, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (In thousands, except per share data) | ||||
|
Twelve Months Ended December 31, 2009 |
Twelve Months Ended December 31, 2008 |
|||
| Net revenue | $ 64,328 | 100.0 % | $ 39,221 | 100.0 % |
| Cost of goods sold | 48,371 | 75.2 % | 28,779 | 73.4 % |
| Gross profit | 15,957 | 24.8 % | 10,442 | 26.6 % |
| Operating expenses | 18,553 | 28.8 % | 14,051 | 35.8 % |
| Impairment loss | — | 0.0% | 27,192 | 69.3% |
| Loss from operations | (2,596) | -4.0 % | (30,801) | -78.5 % |
| Interest income (expense) | (2) | 0.0 % | 261 | 0.6 % |
| Loss before income taxes | (2,598) | -4.0 % | (30,540) | -77.9 % |
| Income tax benefit | (1,021) | -1.5 % | (2,590) | -6.6 % |
| Net loss | (1,577) | -2.5 % | (27,950) | -71.3 % |
| Net (income) attributable to the noncontrolling interest | — | 0.0 % | (5) | 0.0 % |
| Net loss attributable to Real Goods Solar, Inc. | $ (1,577) | -2.5 % | $ (27,955) | -71.3 % |
| Weighted-average shares outstanding: | ||||
| Basic | 18,181 | 15,014 | ||
| Diluted | 18,181 | 15,014 | ||
|
Net loss per share attributable to Real Goods Solar, Inc. common shareholders: |
||||
| Basic | $ (0.09) | $ (1.86) | ||
| Diluted | $ (0.09) | $ (1.86) | ||
| REAL GOODS SOLAR, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| (In thousands) | ||
| December 31,2009 | December 31,2008 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,206 | $ 12,339 |
| Accounts receivable, net | 13,996 | 7,711 |
| Inventory, net | 4,769 | 9,170 |
| Deferred costs on uncompleted contracts | 1,024 | 970 |
| Deferred advertising costs | 114 | 251 |
| Receivable and deferred tax assets | 833 | 704 |
| Other current assets | 598 | 332 |
| Total current assets | 33,540 | 31,477 |
| Property and equipment, net | 5,145 | 5,298 |
| Goodwill | 732 | — |
| Deferred tax assets | 3,064 | 2,239 |
| Other assets | 813 | 1,051 |
| Total assets | $ 43,294 | $ 40,065 |
| Liabilities and shareholders' equity | ||
| Current liabilities: | ||
| Accounts payable | $ 8,821 | $ 6,501 |
| Accrued liabilities | 2,500 | 1,135 |
| Deferred revenue on uncompleted contracts | — | 400 |
| Payable to Gaiam | 1,636 | 1,111 |
| Total current liabilities | 12,957 | 9,147 |
| Total shareholders' equity | 30,337 | 30,918 |
| Total liabilities and shareholders' equity | $ 43,294 | $ 40,065 |